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The S&P500 expected return is 18% and 3 Month T-bill rate is 2% currently, MSFT (Microsoft) has an expected return of 15% and a systematic

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The S&P500 expected return is 18% and 3 Month T-bill rate is 2% currently, MSFT (Microsoft) has an expected return of 15% and a systematic risk of beta -0.7. NVDA(Nvidia) has an expected return of 32% and a systematic risk of beta=1.4 Based on the previous questions' analysis, you can build an arbitrage position like (ex: shorting 75% capital in MSFT, borrowing 25% capital from T-Bill rate, and investing 100% capital in MVDA.)

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